This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
About two weeks ago, I discussed bitcoin’s (BTC) bullish breakout above a technical resistance called the Ichimoku cloud and potential for a rally to $100,000. This week, the cryptocurrency obligingly surged into six figures.
Now, top alternative cryptocurrencies such as memecoin DOGE, payments-focused XRP, the Ethereum blockchain’s ether (ETH) and Solana’s SOL have also crossed above the cloud, flashing bullish signals.
The analysis, developed by a Japanese journalist in the 1960s, is used to identify support and resistance, momentum and trend change in price actions. The indicator comprises five lines: Leading Span A, Leading Span B, Conversion Line or Tenkan-Sen (T), Base Line or Kijun-Sen (K), and a lagging closing price line.
The gap between the first two lines makes the cloud. Crossovers above and below the Ichimoku cloud are taken to represent bullish and bearish shifts in momentum.
The chart shows XRP and DOGE moving above their respective Ichimoku clouds, signaling more gains.
In XRP’s case, the breakout shifts focus to resistance at around 30 cents, characterized by the trendline falling from February highs. DOGE is trading close to its bear market trendline, which, if topped, would expose resistance at $3.02, the lower high created on March 2.
In ETH’s case, the breakout has opened the doors to the 200-day simple moving average (SMA) at $2,700. Meanwhile, SOL may encounter resistance at $218, the 61.8% Fibonacci retracement of the January to April sell-off.